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![]( "Buchcover ISBN 9781118806203")
The Complete Book of Option Spreads and Combinations
Strategies for Income Generation, Directional Moves, and Risk Reduction
von Scott NationsGet a handle on option spreads to hike profit and squashloss
The Complete Book of Option Spreads and Combinations isthe definitive educational resource and reference guide for usingoption spreads and other common sense option strategies. Thisuseful guide shows readers how to select the right strategy fortheir market outlook and risk/reward comfort level by describingthe inner workings of each strategy and how they are affected byunderlying market movements, implied volatility, and time decay. Even more importantly, readers will understand where each strategyperforms well, and the market conditions where each should beavoided. Once the proper strategy is selected, readers will learnhow to identify the best options to use based on „moneyness“ andtime to expiration. The companion website features tools includingan option pricing tool and implied volatility calculator to helpall traders implement these concepts effectively.
There are many different types of spreads, and while less riskythan other option strategies in general, they are more complex, with more variables to monitor. This guide serves as a handbook forthe trader wanting to exploit options to the greatest possiblebenefit.
* Generate monthly income by selling covered strangles
* Use call spreads to recover from a losing stock position
* Protect an existing stock position using put diagonals
* Discover the best strategies for directional market plays
Option spreads are a great tool for traders who would rather bean option seller but who need to limit their risk. The CompleteBook of Option Spreads and Combinations identifies thosestrategies that benefit from option erosion but that limitrisk.
If managed properly, spreads can provide both novice andexperienced investors with the potential for a large return whilelimiting risk. Electronic trading platforms and reduced brokeragecommissions have increased option spread trading, which shouldoccupy a spot in every savvy investor's toolkit. Comprehensive andauthoritative, The Complete Book of Option Spreads andCombinations provides a valuable manual and lastingreference.
The Complete Book of Option Spreads and Combinations isthe definitive educational resource and reference guide for usingoption spreads and other common sense option strategies. Thisuseful guide shows readers how to select the right strategy fortheir market outlook and risk/reward comfort level by describingthe inner workings of each strategy and how they are affected byunderlying market movements, implied volatility, and time decay. Even more importantly, readers will understand where each strategyperforms well, and the market conditions where each should beavoided. Once the proper strategy is selected, readers will learnhow to identify the best options to use based on „moneyness“ andtime to expiration. The companion website features tools includingan option pricing tool and implied volatility calculator to helpall traders implement these concepts effectively.
There are many different types of spreads, and while less riskythan other option strategies in general, they are more complex, with more variables to monitor. This guide serves as a handbook forthe trader wanting to exploit options to the greatest possiblebenefit.
* Generate monthly income by selling covered strangles
* Use call spreads to recover from a losing stock position
* Protect an existing stock position using put diagonals
* Discover the best strategies for directional market plays
Option spreads are a great tool for traders who would rather bean option seller but who need to limit their risk. The CompleteBook of Option Spreads and Combinations identifies thosestrategies that benefit from option erosion but that limitrisk.
If managed properly, spreads can provide both novice andexperienced investors with the potential for a large return whilelimiting risk. Electronic trading platforms and reduced brokeragecommissions have increased option spread trading, which shouldoccupy a spot in every savvy investor's toolkit. Comprehensive andauthoritative, The Complete Book of Option Spreads andCombinations provides a valuable manual and lastingreference.
